ISLAMABAD - The federal government would continue its policy of taking external loans in next fiscal year as it has planned to borrow Rs3.032 trillion in 2019-20.

The government has estimated foreign assistance of Rs3.032 trillion for 2019-20 as against the revised Rs1.403 trillion. The government’s external loan would show an increase of 116 percent in next fiscal year. Pakistan’s public debt and liabilities are rapidly increasing as it had already touched Rs35.09 trillion by end-March 2019. The country is paying huge price of massive borrowing in terms of interest payments, which are estimated at Rs2.89 trillion in upcoming financial year.

The breakup shows that the government would take Rs3 trillion as loans and Rs28.496 billion under the head of grants for next fiscal year. Under the head of outside Public Sector Development Programme (PSPD) resources, Rs13.796 billion have been estimated for next fiscal year which were Rs 8.604 billion for the current fiscal year and later revised to Rs 16.07 billion.

According to the budget documents, Pakistan would borrow the Rs252.2 billion from the Asian Development Bank (ADB) in year 2019-20 as against the revised Rs77.825 billion of the outgoing year. The government would borrow Rs300 billion from the commercial banks in next fiscal year as compared to the revised Rs543.9 billion of ongoing fiscal year. The government has budgeted estimates of Rs 750 billion from friendly countries for the next fiscal year. Meanwhile, Pakistan would also borrow Rs484.701 billion from Saudi Arabia for the next fiscal year. The government had budgeted Rs 5.483 billion for the current fiscal year from Saudi Arabia which was later revised to Rs 8.894 billion. The government has budgeted Rs357.450 billion from the IMF for the next fiscal year for budgetary support. Pakistan would generate Rs450 billion from Sukuk bonds in 2019-20. China would give loan worth of Rs60.9 billion to Pakistan in upcoming fiscal year as compared to revised Rs 502.062 billion of this year. The government has budgeted, no amount under the China Safe Deposits which were zero in the last budget but later revised to Rs 275 billion.

The government has budgeted estimates of Rs148.272 billion from the International Development Association (IDA) against Rs 68.253 billion for 2018-19, later revised to Rs 72.577 billion.

According to the estimates of foreign assistance, the government has budgeted Rs 166.139 billion from Islamic Development Bank (IDB) for the next fiscal year against Rs 119.479 billion for the current fiscal year which was later revised to Rs 101.413 billion. The government has budgeted estimates of Rs 17.839 billion from International Bank for Reconstruction and Development (IBRD) for the next fiscal year against Rs 23.668 billion for the current fiscal year which was later revised to Rs 22.561 billion.

The government has estimated budgeted assistance of Rs 4.605 billion from France for 2019-20 against Rs 6.183 billion for the current fiscal year which was later revised to Rs 11.920 billion, Rs 1.715 billion has been estimated from Korea for next fiscal year against Rs 5.572 billion for the current fiscal year which was revised to Rs 85 million, Rs 70 million has been estimated from Turkish Exim Bank for next fiscal year against Rs 40 million for the current fiscal year which was revised to zero, Rs 12.348 billion has estimated from USA for next fiscal year against Rs 10.659 billion for the current fiscal year which was later revised to Rs 15.444 billion, Rs 3.150 billion has been estimated for 2019-20 from Japan against Rs 4.72 billion for 2018-19 which was later revised to Rs 11.707 billion.